Which of the Following Is Not a Logical Justification for Dividend

question 8

Multiple Choice

Which of the following is not a logical justification for dividend preference (vs.capital gains) in the real world?

• A) Institutional restrictions involving dividends
• B) Higher share prices from higher payouts
• C) A steady source of cash without transaction costs
• D) Differing income tax rates

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Definitions:

Peso-Dollar Exchange

The rate at which the currency of one country (Peso) is exchanged for the currency of another country (Dollar), which fluctuates over time.

Purchasing Power

The ability of an individual or group to buy goods and services with their income.

Internet of Things

A network of interconnected devices, machinery, and systems designed to collect, exchange, and analyse data, enhancing automation and efficiency.

Smart-Home Devices

Electronic devices that can be controlled remotely providing convenience, such as lighting, thermostats, and security systems.